Empowering Students for a Financially Secure Future

Written by Anna Moehn (W’26); Edited by Elizabeth Woodside (W’25)

A staggering 66% of Americans will fail a financial literacy test, according to Foundation 99. This troubling statistic highlights the nation’s unpreparedness to handle financial hardships and lack of personal finance skills, which plays a significant role in the poverty level in the United States. It's time to break the cycle of poverty. 

And it begins at the high school level. 

High school students, who are just starting to face the complexities of adulthood, often lack one essential life skill in their curriculum: personal finance. Only 15 states have embedded a personal finance requirement into their graduation requirements, which includes learning budgeting, saving, and investing skills along with understanding credit, taxes and insurance. With college tuition at an all time high, around 61% of students will graduate with their most costly financial decision riding on their coattails. 

It’s important to take preventative action to assist students in reducing spending in college and provide them with the tools to succeed while living on their own. If how to manage a budget is left untaught, more often than not, their student debt will follow them for the rest of their lives. Considering that 54% of high school students feel unprepared for making financial decisions in their future, it is crucial that they learn these skills before entering adulthood. Teaching personal finance will empower these students with the skills needed to make informed financial decisions, avoid financial pitfalls, and build a more secure future. 

There are many benefits to learning the intricacies of financial literacy at an early age. College students, who often lack the skills to make informed financial decisions, are frequently targeted by credit card companies hoping to capitalize on their inexperience. By introducing personal finance concepts in highschool, students will escape the entrapment of severe debt and encourage self-sufficiency. 

Furthermore, financial education is directly correlated to students' future careers. A personal finance course lays the groundwork for understanding salary, benefits, and retirement plans, setting these students up for success in the workforce. Additionally, this will significantly increase financial well-being. Approximately 44% of U.S. adults report that financial concerns are the number one cause of their depression, often stemming from their past ill-informed financial decisions.

Thanks to student-led initiatives such as Common Cents, Penn is leading the charge of tackling financial literacy. This organization is dedicated to empowering college and underserved high school students to reach financial independence. Additionally, Wharton Women recently provided a Saturday Skills workshop, focusing on imparting essential financial skills, such as budgeting, investing, and understanding credit. Through these workshops, Wharton Women not only provides valuable resources to Penn’s student body but also encourages peer-to-peer learning and mentorship around the topic of personal finance.

By addressing financial illiteracy early on, we can empower students to take control of their finances, promote economic equality, and set them on a path toward financial independence and success in their personal and professional lives. It's time to prioritize personal finance education in high schools and ensure that students are well-prepared to navigate the complexities of the financial world confidently.